Hindustan Times ST (Mumbai) - Live
FM:Needsimplertax code, noifsandbuts
REVIVAL PLAN Nirmala Sitharaman lays out road map for government’s plan to reverse the economic slowdown
NEWDELHI: Layingoutaroadmapforthegovernment’splan to reverse the economic slowdown, finance minister Nirmala Sitharaman said on Saturday that it is committed to greater public expenditure, working on elements of a further stimulus to boost demand and incomes, and also addressing fears of adventurism by taxmen.
Sitharaman, in a conversation at the Hindustan Times LeadershipSummit,saidthatthegovernmenthadalready taken steps to boost business sentiment, and is committed to a simpler tax code, “without ifs and buts” to help revive the economy.
Explaining the delayed payment of compensation to states under Goods and Services Tax (GST) regime, the finance minister also acknowledged, for the first time, that “unstructured” rate cuts had distorted GST. But she categorically said that the compact with the states would be “honoured” and their concerns were genuine.
But the key thrust of Sitharaman’s remarks were centred on the larger state of the Indian economy, in a clear sign that the government was aware of the concerns and the perceptions around it. While hoping that the economy has bottomed out, with the 4.5% GDP growth in the July-Septemberquarter, thefinanceministersaidthatshe wouldnotletthathopelullher.“Iwillbehappyifthatisthe case. But my attention is that more is done for a greater stimulus. I won’t allow that to distract me.”
The larger plan to revive the growth trajectory, the FM said, involved public expenditure. “You will say that private investment is not happening. But we have made repeated commitments of public expenditure in terms of core sector revival and jobs,” she said.